Tue 27th Feb, 2007
Best type of credit card for you
If you are switching to a new credit card, there are some things you should consider if you want to get the best type of credit card that suits you and your spending habits. By paying attention to the way you spend and the way you pay off your credit card balance you will be able to find a card that is right for you.
If you are a regular spender and always clear your balance in full each month then you should consider a credit card with an interest-free period of 59 days from the date of the transaction. This way you will be able to avoid paying interest on your card. A card that offers you a reward or cash back scheme will is another type of card that would be best for you, as you will benefit from the rewards as you will be paying off your balance in full and gaining a bit of a reward for keeping up your payments. However, be cautious of reward cards as they often have higher interest rates than most cards. You also want a card that does not charge an annual fee.
If you are a regular spender and usually clear your balance in full each month and occasionally carry a balance forward, a card with a low interest rate and no annual fee would be the best option. If however, you regularly use your credit card but rarely or never repay the debt in full, the best card for you would be a card with an introductory purchase rate of 0% or a low interest rate. By switching to a card with a 0% or low introductory rate you will then have a chance to catch up on your payments before the interest charges start. However, you will want to make sure that the interest rate is not too high as you may not benefit from the card after the introductory period is over.
By researching and finding a card that is best for you, you will be able to enjoy the privileges and conveniences of a credit card. Keeping a watchful eye on your spending will also help you to know what card is best for you.